2000-01-24 Kazak Politics & MacroEconomics
Article Index
Kazakhstan Weekly
Politics & Macro Economics
Monday January 24, 2000
Deputy PM Unveils Economic Forecast for 2000
According to international experts, Kazakhstan’s gross domestic product (GDP) will equal nearly USD 1,000 per capita in the year 2000, Interfax reported, quoting a speech by Deputy Prime Minister Erzhan Utembaev. The number, equivalent to about USD 15 billion, is “a bad figure”, according to Utembaev.
Utembaev also noted that, using the methodology of the International Monetary Fund (IMF), the republic’s budget deficit in 2000 will reach 5.8% of the GDP. However, the government’s 2000 budget forecasts a deficit of 3% of the GDP, or KZT 63.8 billion. The deputy prime minister stated that “a nation is deemed bankrupt” if it hits a budget deficit of 6% of the GDP, according to the IMF’s methodology.
Concerning Kazakhstan’s foreign debt, Utembaev said that payments on outstanding foreign debts for 2000 would be “greater than last year”. As a result, the ratio of the nation’s foreign debt to GDP “has reached an uncomfortable level”. With this in mind, the deputy prime minister predicted that “the republic will have a quite tense period” in 2000-2001.
Nevertheless, Utembaev expressed confidence that the nation would meet its foreign debt obligations. (Golden Eagle Partners)